Wahl Clipper Multilateral Netting Trims Significant FX Costs
Clear Need for Better Control over FX Exposures and Fees
Wahl Clipper saw the opportunity to expand the value of their Microsoft Dynamics 365 ERP investment by integrating with Kyriba to support more complex treasury functions. With the guidance and help of RSM US, Wahl implemented Kyriba and 360T’s FX trading solutions to provide critical insight into FX spreads and trades.
“Using Kyriba’s BCaaS allowed Wahl to consolidate global cash visibility into a single platform and gain control of regional cash balances previously unavailable. This provided the backbone for implementing Wahl’s physical cash settlement processing for their multilateral netting centers.”Logan Wacker, Director of RSM US
“Centralizing FX at HQ has allowed us to get improved spread compression and leverage larger, fewer FX trades. The former decentralized process did not provide cost transparency resulting in additional spread, time, and other costs equating to a very inefficient process.”Director of Treasury and FP&A, Wahl Clipper
- Increased Efficiency: Provide structure and automation to lessen time spent on manual tasks, leaving more time for strategic work.
- Accelerated Netting: Automate multilateral netting to reduce disconnected FX settlement processes and deliver significant visibility gains to management.
- Robust Controls: Strict roles and responsibilities, segregation of duties, and IT general controls to reduce errors and fraud.
- Lower Processing Costs: Centralizing the buying/selling of currency globally reduces trade execution price and bank fees and consolidates FX exposure reporting into a single platform.
“It’s like going from a horse and carriage to a rocket ship. The key is getting buy-in. We took baby steps, and the more management sees it working, the more they are willing to scale.”Director of Treasury and FP&A, Wahl Clipper
Multilateral Netting and Treasury Automation
With multilateral netting in place, Wahl business units have agreements with other business units that allow for intercompany transactions. Once these transactions are booked and exist within a regional ERP application, that’s when the netting process begins with Kyriba. On a mid-month basis, intercompany payables and receivables are collected from each business unit and matched and settled, and disputes are resolved. It is then reported – exactly what is needed to buy, exactly what is needed to sell, and what the overall currency needs are across the globe for those participants.
“The visibility that Kyriba provides senior management at Wahl for making decisions on our global cash position is phenomenal. Each sub updates their cash forecast via Kyriba on a weekly basis. HQ can make timely decisions to accelerate collections, delay disbursements, and better manage cash as a corporate resource.”
What’s New at Wahl Clipper
Fall 2022: Launched a 13 week global rolling cash forecast through Kyriba. The data is made available from Kyriba into PowerBI, which is used by Wahl Headquarters to make strategic decisions on balances, collections and disbursements.
About Wahl Clipper
A world leader in professional and personal hair clipping products, Wahl does business in 165 countries and operates six manufacturing facilities and 11 sales offices around the world.